******Readme*******

This readme file illustrates the codes and datafiles for the paper �The Effect of Carbon Pricing on Firm Emissions: Evidence from the Swedish CO2 Tax� by Gustav Martinsson, Laszlo Sajtos, Per Stromberg and Christian Thomann, The Review of Financial Studies.

All codes run on Stata/MP 18.0.


***1. Datafiles
As the main data files used in the paper are provided by Statistics Sweden (SCB), due to permission and privacy reasons, any real microdata, i.e., related to non-aggregated object cannot be shared. Therefore, all files containing microdata (e.g., firms' organization numbers) are pseudo data, and the original 10-digit organization numbers has been replaced with numeric identifiers. All accounting values, emissions, investments, as well as other real characteristics of firms are random values generated by python, which only represent the format of the real datasets and their names should align with the real ones. Unused intermediate datasets and variables have been removed from the sample files, the sample datasets provided do not produce meaningful regression coefficients. 

The aggregated datafiles, i.e., carbon_tax_rate_new, energy_tax_fuels, export_leakage, labor_tax, all PACE* files, SIC_NACE_correspondence, and SNI_SPIN_PPI are actual datasets. For more information on the data sources, please see Section 2.1, "Data and Sample Construction" of the paper.


***2. Codes
The codes are labelled with serial numbers with proper orders.

The paper uses the do-files under the folder entitled "paper version". And the replication package runs on do-files under the folder entitled "replication version". 

The only difference between the two sets of do-files is that the original do-files need to call a great number of source files from SCB in order to produce the datasets that are then merged in later do-files. In order for the replication package not to contain a very great number of files we directly call some of the pseudo datasets.  

For example, the codes 4a-4c, 5a-5c, and 6&7 have been converted into brief versions to run on sample datasets. By removing the (/*) before codes, one can get the original codes used in the paper. Please adjust the relative file path command cd"...\RFS_replication_package\Martinsson_et_al_datasets" before running.

The do file named �do file for paper20231003_FINAL RESUBMISSION� is the master file which generates the final regression models and tables. To avoid errors with insufficient observations in the provided sample dataset, one can run the following two commands:
*cd ".../RFS_replication_package/Martinsson_et_al_do_files/replication version"     //Adjust to the correct path of the final do file
*do "8- do file for paper20231003_FINAL RESUBMISSION.do" , nostop


***3. Questions
For more details, please contact authors via email.
